Not a good sign, but this same “mark-to-market” was what eveyone has said was particularly bad about Sarbanes-Oxley, if I properly recal, during the last big market crash.
Suspending it for now may not be a terrible thing.
it just seems like a desperate act now..people will run for the exits of banks and energycompanies
I think it’s a good idea temporarily. On their financial dial statements it will indicate how it is valued, so shareholders and creditors should be aware.
When that was first introduced,those of us in banking said that marking to market, even on performing loans would cause huge swings in bank assets. A better solution would have been higher capital requirements and loan loss reserves. But Congress knows everything.